JAB Holdings, a German holding company that took Panera private in 2017, will continue to own and operate the chain. Niren Chaudhary, CEO of Panera Brands, in a July 1 statement said prolonged unfavorable conditions convinced the parties not to extend plans to make the deal beyond a June 30 deadline. He said, however, that Panera would still explore an IPO when market conditions improve.
While conditions remain challenging for all restaurants, Panera is relatively fortunate among them to have a message that’s new, and positioning relatively less affected by those dropping out of the channel due to economic conditions, such as lower-income consumers, said Gordon.
“Historically, it’s been good for restaurants when advertising to have something new to say—new products, new news, new concepts,” he said. “The conditions generally have been awful for restaurant margins. But having a new look is never bad, and Panera to me seems to be making news,” referring to the recent chicken sandwich launch and expansion of a paid unlimited-coffee offering that’s since been extended to other drinks, supporting loyalty and trip frequency.
Mother Bread's new job
There are parts of the Panera brand for which the chain’s shifting emphasis may no longer appear quite as prominent.
“Mother Bread,” Panera’s name for the illustration of a woman baker with flowing hair—and a reference to the term for a sourdough starter, which has been a part of all Panera restaurants for 30 years—isn’t gone completely. But she will no longer be quite as prominent a symbol, relegated to represent Panera’s bread, and no longer necessarily showing up alongside its wordmark.
Extensive analysis of all the brand’s “design vocabulary” revealed its most important associations with consumers were its wordmark, the color green, and bread, said Martin. “Mother Bread was less of association, but it didn’t mean she wasn’t an association,” Martin added. “It just meant that we needed to give her more purpose, and so that’s why tying her to bakery was critical.”
Martin said she is confident the changes underway will be welcomed by customers, and the time to do so is now. By the first quarter of next year, changes will reflect new food packaging, uniforms, and a rolling program of interior renovations will be underway.
“We’re not some pedantic geometry teacher lecturing you which equation to use. We have this big tent, we’re inviting people in,” she said. “It starts with the fundamental idea of a healthier and happier world, and for us, the question is ‘how does that come to life?’”
While design can be one way to influence consumer opinion, Panera’s ultimate goal is a difficult one to achieve by any means, noted Jonathan Maze, editor-in-chief of Restaurant Business, an industry trade journal.
“Panera’s strength has always been its perception as better fast food: better ingredients and healthier. But people want good food,” Maze said. “Finding a way to convince folks that its food is actually delicious is like the Holy Grail.”